ID: MRFR/ICT/2272-CR | February 2020 | Region: Global | 153 pages
Market Research Future (MRFR) expects the global video streaming market to expand at a 20.8% CAGR from 2018–2023 (forecast period). Video streaming technology has swiftly emerged in the field of information and technology. Video streaming is used for business activities and helps companies modernize their day-to-day operations, such as scheduling meetings, live table conferences, and communicating with customers internally. The growing demand for live and on-demand video content among consumers is one of the factors contributing to market growth. The growing use of smartphones to watch movies, TV shows, live sports, and events also promote market development. The market is very competitive, with key players as well as emerging video streaming service providers looking to deliver high-quality content to end-users with flexible payment models. This gives customers a range of choices to choose from the available content libraries.
Online video streaming has become increasingly important in the recent past as it offers personalized video content that can be viewed anywhere at any time. The online video streaming industry is primarily made up of major international players such as Netflix, Amazon Prime Video, Disney+, Hulu, HBO, Apple TV+, and YouTube, among others.
Since the global lockdown in early March due to the outbreak of COVID-19, governments worldwide have taken action to prevent and mitigate the spread of the coronavirus by shutting all administrative, manufacturing, and corporate activities in both developed and emerging economies. Employees were either asked to work from their homes or provided with paid leave. In addition, all other business activities, schools, colleges, universities, etc., are closed, forcing the majority of the population to remain in their homes. This, in turn, has led people to opt for the Internet and other online platforms for entertainment.
During this pandemic, the number of Netflix subscribers rose by approximately 16 million, reaching a total of approximately 182.9 million, which took Netflix 7 years to achieve this milestone. Disney+, which was newly introduced last month, obtained a subscriber base of about 50 million in the United Kingdom and other Western European countries during this outbreak. Disney+ has a cumulative user base of 28.6 million. In addition, its collaboration with the Hotstar streaming service has added 8 million additional subscribers to its customer base. The outbreak has proved to be a bonus for all streaming service providers. Overall, the global streaming industry is projected to rise by almost 20% year on year.
In terms of revenue generation, Netflix has earned around USD 709 million over the first three months of 2020 and is projected to expand further with a marginal impact by the outbreak. Content producers are now directly launching their content on these channels and are proving to be beneficial in terms of revenue generation. As per a letter shared with its shareholders, Netflix noted that some of the lockdown growth would turn out to be guided forward from the multi-year organic growth trend, leading to slower growth after the lockdown, globally. In conclusion, in the near future, the growth of the video streaming market is expected to rely on the time spent by users on the Internet, as well as on consumer spending power.
Rise in live-streamed content
Live streaming is an exciting opportunity for many content providers and rights holders to communicate directly with their target audiences and generate new revenue streams. Live streaming is on the rise, but it's still in its early stages. Increased cloud penetration and growth in the reach of the Internet have made it easier for different audiences to reach their niche content and enable advertisers to position-specific content more specifically in front of the intenders. A greater number of people are streaming live video content than before, mostly due to the efforts of companies such as Hulu, Facebook, and the NCAA. As per a survey conducted by the Interactive Advertising Bureau (IAB) in May 2018, 47% of live streaming video viewers worldwide stream more live video than they did a year earlier, and almost 44% said they were watching less live streaming. These figures show the large continuous growth of live-streamed content, which is expected to drive the growth of the video streaming industry.
Integration of advanced technologies in video platforms to enhance video quality
Technological advances such as Artificial Intelligence (AI), block-chain technology, deep learning, and natural language processing are projected to be the next transformative technologies for streaming and improving video quality, which is expected to create multiple opportunities for the video streaming industry in the coming years. AI plays a vital role in scoring, editing, cinematography, scriptwriting, voice-overs, and other aspects of video production. Several providers use AI to enhance the quality of content. In addition, the growth of online streaming over media such as YouTube and Netflix are projected to grow in the near future. For example, Facebook and other platforms are deploying AI to delete and prevent offensive content from being shared. Image analysis techniques, like object detection and image classification, are used to categorize and identify specific images, while image segmentation puts those images into context.
Global Video Streaming Industry has been segmented into Type, Deployment, Platform, Component, and Model.
By type, the global video streaming market has been segmented into On-Demand Video Streaming and Live Video Streaming.
By deployment, the global video streaming market has been segmented into Cloud and On-premise.
By platform, the global video streaming market has been segmented into Smartphones, Laptops & Desktops, Smart TVs, and Gaming Consoles.
By component, the global video streaming market has been segmented into Software solutions (Video Analytics Solution, Video Management Solution, and Video Security Solution) and Services (Professional Services and Managed Services).
By model, the global video streaming market has been segmented into Subscription Video on Demand, Advertisement Supported Video on Demand, Hybrid, and Transactional Video on Demand.
North America to capture the highest CAGR
North America had the highest market value of USD 12,329.3 million in 2018; the market is projected to record a CAGR of 21.2% over the forecast period. North America has seen strong adoption of video streaming in recent years. The presence of key market players in the US, such as Netflix Inc., Amazon Web Services, Apple Inc., Hulu, IBM Corporation, and Microsoft Corporation has propelled the growth of the video streaming market in the region.
Companies are focused on growing the customer base through a range of strategic initiatives, such as alliances, M&A, and partnerships.
Notable players in the global video streaming market are Netflix, Inc. (US), Adobe Inc. (US), Google LLC (US), Amazon Web Services (US), Microsoft Corporation (US), Walt Disney Company (Hulu) (US), Apple Inc. (US), Cisco Systems Inc. (US), IBM Corporation (US), and Akamai Technologies Inc. (US).
This research report examines crucial factors, constraints, and obstacles in the global video streaming market, regional and segment revenue forecasts, and assessments. The base year is 2018; the projection is 2018-2023. The segmentation of the market is described in the following manner.
|Market Size||USD 12,329.3 Million (2018)|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||By Model, By Platform|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Netflix, Inc. (US), Adobe Inc. (US), Google LLC (US), Amazon Web Services (US), Microsoft Corporation (US), Walt Disney Company (Hulu) (US), Apple Inc. (US), Cisco Systems Inc. (US), IBM Corporation (US), and Akamai Technologies Inc. (US).|
|Key Market Opportunities||Technological advances such as Artificial Intelligence (AI), block-chain technology, deep learning, and natural language processing are projected to be the next transformative technologies for streaming and improving video quality, which is expected to create multiple opportunities for the video streaming industry in the coming years.|
|Key Market Drivers||Live streaming is an exciting opportunity for many content providers and rights holders to communicate directly with their target audiences and generate new revenue streams. Live streaming is on the rise, but it's still in its early stages.|
Frequently Asked Questions (FAQ) :
The demand for on demand and live online content is expected to singularly motivate the market for video streaming.
Netflix, Inc. (US), Walt Disney Company (Hulu) (US), Amazon Web Services (US), IBM Corporation (US), Microsoft Corporation (US), Apple Inc. (US), Google LLC (US), Adobe Inc. (US), Cisco Systems Inc. (US), and Akamai Technologies Inc. (US)
The on-demand video streaming segment shows the highest potential to achieve optimum development of the market in the forthcoming period.
The market for video streaming is expected to earn revenues worth USD 1,02,097 by 2023 while developing at a CAGR of 20.8%.
The North American region is anticipated to emerge as the leading regional market for the video streaming market in the upcoming period due to the presence of well-established market leaders.